people that can give them money. It includes family, friends, your Employer and also loan providers. Banks and NBFCs both provides loan, but it’s important to understand that which one is better to get a loan.
A person can take loan from Bank or NBFC, but there are few differences between Bank Loans and NBFC Loans. Brief knowledge about these differences can help you to select the better option for your loan.
Banks and NBFCs both are the financial entities and offers similar financial products. Because they offer same products and services, it’s quite tough for a Loan applicant to select the better one and they always think about which one would be best for their need, Bank or NBFC. Banknomics India did a brief comparison between the services and products of Banks and NBFCs and trying to provide a complete description about their facilities. This will help a borrower to find out the best option while looking for a loan.
Key differences between Banks and NBFCs
Banks and Non Banking Financial companies in India both offer loans, credit cards, Insurances and other financial products and services. Banks in India comes under the act of banking companies operated by the RBI while the Non Banking Financial Companies comes under the Companies Act of 1956.